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LOSS PROCEEDS AND TAXES
You must include
in income any crop insurance proceeds you receive as the
result of crop damage. You generally include them in the
year you receive them. However, you can elect to postpone
reporting crop insurance proceeds as income until the year
following the year the damage occurred, if you meet ALL the
following conditions.
•You use the cash
method of accounting
•You receive the
crop insurance pro-ceeds in the same tax year the crops are
damaged
•You can show
that under your normal business practice you would have
included income from the damaged crops in any tax year
following the year the damage occurred.
See IRS Pub.225
for a description of the proceeds for which an election may
be made and for what you must include in your statement.
SALES CLOSING
DATE-MARCH 17
The following changes require signatures by
March 17:
Application and Transfers Policy or Crop Cancellations Plan Changes Price/Level Elections Adding or Deleting a crop or county High Risk Land Exclusions (Cat if desired) Prevented Plant Option Continuous Hail Exlusions ‘All Counties’ designation Yield Adjustment Option
DATES TO
REMEMBER
March 1 …The
Base Price for corn and soybeans for CRC, RA and IP products
will be unofficially announced. The Base Price for corn is
the February average of the CBOT December corn contract. The
Base Price for soybeans is the February average of the CBOT
November soybean contract.
March 17
(March 15 is a Saturday)….Sales Closing Date for corn and
soybeans for 2003 crop year.
April 30 ...2002
Production reporting deadline.
July 15 …2003
Acreage reporting deadline
Oct 1 …Premium
due
SPOUSE SOCIAL
SECURITY NUMBER
Effective with
the 2002 crop year, the Risk ManagementAgency made a
clarification that requires agents to obtain a Social
Security Number (SSN) or Employer Identification Number (EIN)
for the spouses of all insureds. If you have not yet
provided this information, your crop insurance specialist
will be asking you for it prior to March 15.
ENTITY CHANGES
Any change in the
structure of your operation is extremely important. If you
change from your current structure to a partnership or LLP,
joint venture, any type of corporation including, C, S and
LLC’s, trust, estate or to an individual status, be sure to
let your insurance specialist know of these changes prior to
March 15. Failure to have the proper entity insured could
result in reduction of coverage.
CHANGES FOR
2003
There are few
changes in the program for the 2003 crop year. The yield,
revenue and group insurance products all are available for
2003. The premium subsidies remain at the same levels
as in the past.
WRITTEN
AGREEMENTS
Starting with the
2002 crop year, some Written Agreements were valid for more
than one year. The approved Agreement from RMA will indicate
the number of years it is valid.
Requests for
re-issue of 2002 Written Agreements for the 2003 crop year
must be signed by the insured AND received by the
underwriting company by March 17, 2003.
Contact your
insurance specialist for more information on Written
Agreements.
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